Arunachal Pradesh Chief Minister Pema Khandu has welcomed the Union Cabinet’s approval to the Small Hydro Power (SHP) Development Scheme for 2026-31, highlighting its potential to promote clean energy and support rural economies in the Northeast. “This is a big boost for the Northeast, especially Arunachal Pradesh, where our rivers hold immense untapped potential. The enhanced financial support for hilly and border areas will help unlock clean, decentralized energy in remote regions,” Khandu said in a post on X. “Small hydro projects are not just about power. They bring local employment, sustainable development, and strengthen infrastructure in frontier areas without large-scale displacement,” he said. “With the right planning and execution, this scheme can transform rural economies, empower local communities, and position our region as a leader in sustainable hydropower,” the CM added. The scheme, approved by Union Cabinet on Wednesday, will support small hydro projects (between 1-25 MW capacity). In Northeastern States and in districts with international border, central financial assistance to the tune of Rs.3.6 crore per MW or 30 per cent of the project cost, whichever is lower with an upper limit of Rs 30 crore per project will be available.
